The Federal Tax Authority (FTA) has announced that businesses must complete Corporate Tax registration within 90 days from the Date of Incorporation / MOA.
Since Corporate Tax was introduced in the UAE, tax compliance has become part of the business journey much earlier than many entrepreneurs expected. Previously, most new companies focused on licensing, banking, and operations in their first year. Today, Corporate Tax registration has joined that list of early priorities.
Many startups and foreign investors still ask the same question: When exactly must a new business register for Corporate Tax? The answer is straightforward, but the timeline is stricter than most people realise. This guide explains the official deadlines, who must register, and how new businesses can stay compliant from day one.
Understanding Corporate Tax in the UAE
Corporate Tax is a federal tax applied to the net profits of businesses operating in the UAE. The system is designed to remain business-friendly while aligning the country with global tax transparency standards.
Current Corporate Tax rates:
- 0% on taxable income up to AED 375,000
- 9% on taxable income above AED 375,000
This structure ensures that startups and small businesses are protected during early growth while profitable companies contribute to the tax system.
The regime is administered by the Federal Tax Authority through the EmaraTax portal.
Registration vs Paying Tax A Common Misunderstanding
One of the biggest misconceptions is that businesses only need to think about Corporate Tax once they start making profits.
In reality, registration and tax payment are two different obligations.
Registration simply means the business is officially entered into the Corporate Tax system and receives a Corporate Tax Registration Number (TRN). This step is required even if the company expects:
- No profit in the first year
- Small startup losses
- Delayed operations
This is why registration deadlines arrive much earlier than many founders expect.
The Main Rule for New Companies: The 3-Month Deadline
For companies incorporated on or after 1 March 2024, the rule is clear:
New businesses must register for Corporate Tax within 3 months of incorporation.
This applies to:
- Mainland companies
- Free zone companies
- UAE branches of local entities
The countdown begins from the official incorporation date, not from:
- First invoice issued
- Start of operations
- First revenue earned
Example Timeline
To make this clearer:
| Incorporation Date | Registration Deadline |
|---|---|
| 10 April 2024 | 10 July 2024 |
| 1 September 2024 | 1 December 2024 |
| 5 January 2025 | 5 April 2025 |
This short window is why Corporate Tax registration should be included in the initial company setup checklist.
Businesses Formed Before Corporate Tax Implementation
Companies established before March 2024 followed a different timeline. The UAE introduced transitional deadlines based on licence issuance dates to allow older businesses to transition smoothly into the new tax system.
For new businesses today, however, the process is simpler. The three-month rule is now the standard deadline most companies must follow.
Sole Proprietors and Freelancers: When Do They Register?
Corporate Tax also applies to individuals conducting business once they reach a certain scale.
Registration becomes mandatory when annual business turnover exceeds AED 1 million.
Instead of a three-month window, the deadline is tied to the year the threshold is exceeded.
Registration deadline:
31 March of the year following the year the threshold is crossed.
For example, if a freelancer earns over AED 1 million in 2024, registration must be completed by 31 March 2025.
This ensures smaller side businesses are not brought into the tax system too early while larger individual businesses are gradually included.
Foreign Companies Entering the UAE
Non-resident businesses must also consider Corporate Tax registration if they create a tax presence in the UAE.
This can happen when a foreign company:
- Opens a branch or office
- Starts a long-term project
- Creates a permanent establishment
- Earns UAE-sourced income
Once this taxable presence exists, the registration deadline is within 3 months of the obligation being triggered.
What Happens If the Deadline Is Missed?
Missing the Corporate Tax registration deadline can lead to immediate penalties.
The most significant one is:
AED 10,000 late registration penalty
Beyond the financial impact, late registration may also lead to:
- Delays in tax filings
- Increased compliance scrutiny
- Potential licensing complications
Registering early helps avoid unnecessary risk and administrative stress.
After Registration: What Comes Next?
Receiving a Corporate Tax TRN is only the first step. Once registered, businesses must continue their compliance journey by:
- Maintaining proper accounting records
- Preparing financial statements
- Filing Corporate Tax returns annually
- Paying Corporate Tax when due
- Registration is the beginning of an ongoing compliance cycle, not the end of the process.
Practical Tips for New Businesses
To stay ahead of deadlines and avoid penalties:
- Include tax registration in your setup process: Treat it as important as licensing and banking.
- Set reminders immediately after incorporation: The three-month window passes quickly.
- Work with tax advisors early: Ensures accurate registration and smooth compliance.
Conclusion
Corporate Tax registration has become a standard milestone in the early life of every UAE business. The key takeaway is simple:
- New companies must register within 3 months of incorporation
- Freelancers must register once turnover exceeds AED 1 millio
- Foreign companies must register within 3 months of creating UAE tax presence
By treating registration as an early business task rather than a later obligation, companies can avoid penalties and start their compliance journey with confidence.
For many startups and new investors, navigating Corporate Tax timelines alongside company setup, accounting, and licensing can feel overwhelming. Working with experienced advisors can make the process faster and far less stressful. Reyson Badger helps businesses manage Corporate Tax registration, compliance planning, and ongoing tax support so founders can focus on building and growing their companies with peace of mind.
